Topic of the Week – The Challenge of Repeat Customers
A recent study from Uptain analysed data from over 3,000 online stores, revealing a concerning trend: only 14.77% of online shoppers return to an online store to place a second order. This means that a staggering 85.23% of customers are one-time buyers, making it a significant challenge for ecommerce businesses to retain customers and encourage repeat purchases. The study highlights the importance of implementing effective strategies to engage repeat customers, as they have a higher median shopping cart value and require a smaller marketing budget compared to new customers.
One of the key findings of the study is that returning customers have a higher median shopping cart value of €80.41, compared to one-time buyers who have a median shopping cart value of €59.90. This indicates that retaining customers can lead to a significant revenue boost for online sellers. However, the study also notes that the median shopping cart value decreases gradually after repeat customers place more than 3 orders, suggesting a need for ongoing engagement and incentives to maintain customer loyalty.
Another important finding of the study is that only a small group of customers become regular customers. In fact, only 12.37% of customers place more than 3 orders, and less than 2% shop multiple times per month. This indicates that even when customers do decide to place a second order, only a very small group of them actually becomes loyal customers. This highlights the need for ecommerce businesses to develop targeted strategies to increase customer loyalty and encourage repeat purchases.
The study also provides insights into the behavior of returning shoppers. For example, they visit fewer pages and spend less time in the online store, making it essential for sellers to work with clear offers and messages that quickly capture their attention. This suggests that ecommerce businesses need to be strategic in their marketing efforts, using clear and concise language to communicate with returning customers.
So, what can ecommerce businesses do to increase repeat customers? One strategy is to target first-time customers with timely offers and messages around 2 weeks after their initial purchase. Regular communication and incentives can also help to foster closer relationships with repeat customers and encourage repeat purchases. Additionally, using clear offers and messages can help to quickly capture the attention of returning shoppers. Finally, ecommerce businesses can consider using discounts and incentives to target customers and encourage repeat purchases.
By understanding the challenges and opportunities presented by repeat customers, ecommerce businesses can develop targeted strategies to increase customer loyalty and drive revenue growth. By implementing effective strategies to engage repeat customers, ecommerce businesses can build a loyal customer base and drive long-term success.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Customer Retention eCommerce stats
- 71% of consumers are more likely to recommend a brand after a positive customer experience.
- 77% of consumers are more likely to return to a brand after a positive customer experience.
- The average order value for repeat customers is 25% higher than for first-time customers.
- Repeat customers spend 67% more than first-time customers.
- The probability of selling to an existing customer is 60-70%, while the probability of selling to a new customer is 5-20%.
That’s all for this week…
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